Thursday 21st October 2010 3 Comments |
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The Serious Fraud Office is looking into the affairs of the WSD group financial services of companies amid claims it failed to correctly account to investors for funds received.
The firm, which was chaired by former Progressive Party MP and Cabinet Minister Matt Robson until November last year, has grabbed the attention of the SFO in the past.
The investigator assisted Cook Islands officials after WSBC was placed under statutory management in 2008 and had its banking licence revoked last year.
Former Internal Affairs Minister Richard Worth was also on the firm's board.
The SFO exercised search warrants at the firm's office and at a private residence.
"Most of the investors in WSD are overseas residents, so it is important that the SFO does all it can to protect New Zealand's reputation amongst both domestic and international investors as a well-regulated and safe place to invest," SFO director Adam Feeley said in a statement.
WSD describes itself as an international company specialising in foreign exchange, precious metals, futures, options and CFD trading, and shot to the spotlight when director Riaz Patel was investigated by Cook Islands and Indian authorities.
WSD Global Markets is accredited as an NZX futures and options firm.
The company is believed to be operating in New Zealand, Australia, Kenya, India, Thailand, United Arab Emirates and the US, and the Thai Securities and Exchange Commission terminated WSD Financial's futures trading licence in June.
In a background piece on WSD, the SFO statement says a former representative of one of the firms being investigated alleged the group was "nothing more than a ‘Ponzi' scheme".
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